Receipt and deposit of insurance premiums by brokers is a violation

Mohammad Javad Aghajari, Director General of Insurance Services Network Supervision, said: “Following the discrepancies in the issuance processes or contracts concluded between some insurance companies or subsidiaries with official direct insurance agents in the directives of cases of violations.” It was announced to the insurance companies.

According to this circular, it is a violation to transfer the authority to receive insurance premiums directly or electronically from insurers to official brokers and to delay the payment of insurance premiums received by agents to the accounts of insurance companies.

It is a violation of the issuance process with the current regulations and instructions to provide access to the issuance system or assign the issuance user to the official direct and online insurance brokers by the company’s representatives and branches and subsequently pay part of the issuance fee to these brokers by insurance companies.
The Director General of Supervision of Central Insurance Services Network asked the insurance companies, while reviewing the processes of issuing and amending the provisions of related contracts, to prevent any collection of insurance premiums by brokers and deposit of insurance premiums with them and payment of part of the issuance fee by brokers to brokers. Deposits should be deposited in the account of the insurance company on the day of receipt, and the result of the actions taken should be reflected in the central insurance within a maximum of two working days.

It was also announced that the responsibility for the proper implementation of the provisions of this circular lies with the CEOs and relevant executive units, and in case of any inconsistencies, key employees, representatives and relevant agents will be treated in accordance with the regulations.